Zirakpur trending among homebuyers and tenants, as Chandigarh pricey option

CHANDIGARH: A 38-year-old businessman Manjot Singh has now moved out of Chandigarh after staying in the city since he was born.

The ever increasing rent, extortionate prices of houses and high cost of living in the city left him with no choice.

There are hordes of people who are shunning City Beautiful, which is one of the most livable cities in the country, and moving to Zirakpur for cheaper homes, undermining the belief that Chandigarh will always be a preferred place to relocate.

The rent and price of property, both residential and commercial, in Zirakpur are almost half as compared to Chandigarh.

The average asking rent of 1 BHK flat in Chandigarh is between Rs 10,000 to Rs 15,000; Rs 16,000 to Rs 20,000 for 2 BHK; and Rs 20,000 to Rs 35,000 for 3 BHK. In plotted houses, average rent for a floor in a 10-marla house is between Rs 35,000 to Rs 45,000, while rent of floor in a kanal house in northern sectors goes up to Rs 1 lakh. Rent in the southern sectors is around 25% less than that in the northern sectors.

A10-marla plot costs up to Rs 60 lakh in Zirakpur, while property of the same size in Chandigarh was worth Rs 3.5 crore. A well-constructed 3 BHK flat is available for around Rs 35 lakh in Zirakpur whereas in Chandigarh one has to shell up to Rs 80 lakh for the same.

If one buys a 3 BHK flat in Zirakpur for Rs 35 lakh after taking a loan of around Rs 25 lakh, he will end up paying around Rs 20,000 as equated monthly installment (EMI) for home loan. “I was paying Rs 22,000 as monthly rent for my three-bedroom accommodation in Chandigarh, whereas my monthly EMI of home loan is little over Rs 20,000,” shared Manjot Singh.

Zirakpur’s real-estate transaction witnessed increase of 20% in 2017, and the builders expect this figure to cross the 25% mark by the end of this year. There are around 30 projects – both commercial and residential-—spread in different parts of Zirakpur.

GBP Group sales director Anupam Gupta said Zirakpur has registered a phenomenal growth in recent years. At present, the monthly transaction average stands at around Rs 200 crore, which will further go up. Gupta said with property now being unaffordable in landlocked Chandigarh, the buyers are turning to Zirakpur. “Zirakpur has all the required infrastructure and facilities to meet the requirements of people,” said Gupta.

Chandigarh’s collector rates and conversion charges have pushed up the cost of its property. Collector rate is the lowest price for which a property is registered. It is fixed by the administration and revised every year. In many areas of Chandigarh, this rate exceeds the actual property price to a disproportionate degree.